User Account

All Pages

Provide a clear interpretation of the r-two

Assignment Help Econometrics
Reference no: EM131486361

Assignment

You have been retained by a regional food marketer, FoodKing, to forecast the demand for small cakes that are mass-produced and marketed under the name Big Suzy's Snack Cakes. To assist with your analysis, you are provided with data that was collected for 8 consecutive quarters and 6 geographic markets. (Note: THE DATA IS CONTAINED IN THE EXCEL FILE LABELED "BIG SUZY.XLSX"). EITHER CIRCLE or BOLD all Final Answers.

Estimate a regression model that expresses sales as a function of price, income, competitor's price and population. Having done that, you are asked to address the following questions.

(a) Estimate a regression model that expresses sales as a function of price, income and competitor's price and population? Once you have estimates the regression model, (a) provide a clear interpretation of the "R2 " and (b) the statistical significant of the overall regression. Be sure to explain if the overall regression is statistically significant at a 5% level and how you know that.

(b) Can you provide a clear, concise interpretation for the slope coefficient on price? Is that coefficient significantly different from zero at the 5% level? How do you know that?

(c) FoodKing is considering entering a new market. In this market, the population is 2,750,000, the average (or per capita) income is $46,500 and the competitor's product sells for $4.75. Using this regression model, if you price your product at $5.50, how many pies will you sell? BE VERY CAREFUL WITH THE UNITS OF MEAUREMENT - FOR EXAMPLE: NOTE THAT THE PRICES IN THE DATA SET ARE MEASURED IN CENTS. SHOW YOUR WORK.

At $5.50, we will sell ______________ pies.

(d) One of your assistants notes that the market that you are considering entering is located in the southern part of the nation. She asserts that "everyone knows that southerners eat lots of snack cakes." You note that in your data set, Atlanta and Dallas are the only two cities that are in the "South" census district. Can you test you assistant's hypothesis that "southerners eat lots of snack cakes"? If so, is she correct? If so, how many more snake cakes do Southerners eat than their comparable non-southerners? SHOW YOUR WORK.

Do Southerners eat more stack cakes than non-Southerners? YES or NO

If "Yes", how many more? They eat _________________ more cakes.

(e) Ignore the issue about Southerners in (d). Instead, one of your assistants suggests that there is a significant seasonal effect on the consumption of snack cakes. Specifically, he suggests that "people each more snack cakes during that holiday season (October through December)". Can you test you assistant's hypothesis? If so, is she correct? If so, how many more snack cakes do they eat doing the holiday season? SHOW YOUR WORK. (hint: use a dummy variable)

Do we sell more stack cakes during the holiday season?
YES or NO (circle one)

If "Yes", how many more? They eat _________________ more cakes.

Attachment:- big_suzy.rar

Reference no: EM131486361

Questions Cloud

What protection do you think he should have had at this time : Kathy Jones was a junior at Glenbard High School. She had two younger brothers. Her father, the assistant manager of a local supermarket, had take-home pay.
Create a profit plan finance plan and budgeted balance sheet : Need to create a profit plan/finance plan and budgeted balance sheet and show the workings? There is a prepayment of taxes amounting to 700,000
The failed evidence-based treatment : Describe one evidence-based treatment for this diagnosis and provide a rationale for your choice.
Hold string values and implement the same interface : Use an instance of stack from to hold string values and implement the same interface as the data type.
Provide a clear interpretation of the r-two : Provide a clear interpretation of the "R2 " and statistical significant of the overall regression. Concise interpretation for the slope coefficient on price?
What are some of the strategies that ross can use : Jamie Lee and Ross, happy newlyweds with a new home and twins on the way, are anxiously awaiting their new bundles of joy. Ross was understandably nervous.
Compliance auditing in regulatory enviroments : A series of high visibility examples of corporate fraud motivated the federal government to step in and create laws to hold corporations more accountable.
What kind of interaction style do both products support : Find an example of a good and an example of a bad user interface (UI) from two digital products, analyzing their interaction styles and using Norman's Interaction Model.
Compliance audit tools and resources : Today, a number of software solutions are able to reach out into a network and perform controls and configuration testing against a set of criteria matched.

Reviews

Write a Review

Econometrics Questions & Answers

  Determine its henry''s constant at 273 k

If the atmospheric ozone concentration in a polluted air is 100 ppbv, what is the concentration in equilibrium with a body of water in that region at 298 K? Note that you need to assume no losses of ozone other than absorption into water

  Evaluate the meaning of the selected literary work

Evaluate the meaning of the selected literary work, using the analytical approach you described

  Derive the steady-state equilibrium under these conditions

Suppose that now research firms can sell their machines to all producers in the world, including those in the South, and can charge the same markup. Derive the steady-state equilibrium under these conditions.

  Describe the different types of substantive procedures

Describe the different types of substantive procedures.

  Show that in an eulerian graph degree of every node is even

Describe an algorithm that decomposes any graph with only even-degree nodes into a collection of arc-disjoint cycles, and then converts the cycles into an Euler tour.)

  Calculate the amount of labor and the number of machines

A firm uses labor and machines to produce output according to the production function f(L,M)=4L raise to 1/2 M raise to1/2 where L is the number of units labor used and M is the number of machines. The cost of labor is Php.

  How does the quantity demanded changes

If the price falls to $2.50, how does the quantity demanded changes? What would be his consumer surplus then? Explain with the help of diagram.

  What is the cartels profit maximizing price of oil

Suppose that demand for cartel's oil is given by P=50-.1Q where P is the price per barrel and Q is the quantity produced in barrels. If the cartel's aggregate marginal cost is given by MC= 10+0.2Q what is the cartel's profit maximizing price of oi..

  What are critical access hospitals

The last piece of historical legislation deals with the history of the Community Reinvestment Act.

  Graph this consumption schedule and determine the mpc

Assume now that a lump-sum tax is imposed such that the government collects $10 billion in taxes at all levels of GDP. Graph the resulting consumption schedule and compare the MPC and the multiplier with those of the pretax consumption schedule.

  What fraction of the calls last more than 4 minutes

A study of long distance phone calls made from the corporate offices of Pepsi Bottling Group, Inc., in Somers, New York, revealed the length of the calls, in minutes, follows the normal probability distribution.

  Use expenditure approach to compute gdp and calculate ndp

Below are hypothetical data for the economy in a particular year. There is no statistical discrepancy.Export 179Capital consumption allowances 79 Government current purchases of G & S 134 Indirect taxes (less subsidies) 76Wages, salaries, supplementa..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd